Service Line Specialization Is The Name Of The Game

I read, with interest, a recent piece on the future of U.S. hospitals,  Service-line strategies for US hospitals, by the consultants of McKinsey & Company. The premise is quite simple – the full service hospital is going to have an increasingly difficult time competing. Their solution? "A commitment to clinical service lines as an organizing paradigm, much as many corporations organize themselves by business unit—is becoming a necessity. . . Specializing in a few service lines allows hospitals to build a critical mass of patients in select areas and to enjoy economies of skill and scale... "

This market focus on specialization – and the need to adopt service line management tools is not limited to hospitals. I see it as a key survival strategy for organizations in the behavioral health and social service niche playing field.

At our 2010 OPEN MINDS Strategic Planning Institute last month, I presented our recent analysis of our post-recession, post-health care reform model for specialists. In a nutshell, there are four likely delivery system market positions – two in facilities and two that are tech-enabled:

• Destination Specialty Services
• One-Stop Health Service Shopping
• Mobile, Home-Based, & Community Care Services
• E-Health & Remote Services

But, that is only part of the strategic positioning story. Within those delivery system market segments, the detail can only be answered by effective service line analysis and management. For your strategic planning – and then for your on-going market strategy implementation and operations management structure – service line management models are key to effective analysis and nimble management during this turbulent market environment. If your current planning isn’t grounded in an organizational view based on service lines, consider next year’s plan as a good place to start today.